West Kensington leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in West Kensington will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some situations you may not qualify. There are also strict deadlines and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The conveyancers that we work with procure West Kensington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Harry was the the leasehold proprietor of a conversion flat in West Kensington on the market with a lease of a little over 72 years left. Harry informally spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Harry to exercise his statutory right. Harry procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. R Ali completed a recently refurbished apartment in West Kensington in March 1997. The question was if we could estimate the premium could be to extend the lease by 90 years. Identical flats in West Kensington with an extended lease were valued around £210,000. The mid-range amount of ground rent was £50 billed annually. The lease terminated on 19 June 2105. Having 80 years unexpired we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.
An example of a Lease Extension matter before the tribunal for a West Kensington flat is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case affected 1 flat. The unexpired residue of the current lease was 37.79 years.